Select Committee · Public Accounts Committee

Decarbonising home heating

Status: Closed Opened: 22 Mar 2024 Closed: 29 May 2024 16 recommendations 23 conclusions 1 report

Home heating made up 18% of all UK greenhouse gas emissions in 2021. In October of the same year, the Government published its Heat and Buildings Strategy, which has the ambition to end the installation of new fossil fuel boilers by 2035. It also commits to growing the supply chain for heat pumps to a …

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Reports

1 report
Title HC No. Published Items Response
Thirty-Seventh Report - Decarbonising home heating HC 653 26 May 2024 39 Responded

Recommendations & Conclusions

11 items
2 Conclusion Thirty-Seventh Report - Decarbonising h… Accepted

Set out plans to simplify heat pump landscape for consumers, clarifying insulation impacts.

We are concerned that there is too much complexity and potential confusion for households to enable them to make informed decisions about installing a heat pump. Households can face complex decisions when looking to install a heat pump. For example, DESNZ is removing a requirement to have minimum standards for …

Government response. The government agrees and is improving its Heat Pump Home Suitability tool to include localized links, advice on pipework and radiators, and the impact of insulation on energy bills. It will also set out further improvements to consumer navigation in …
HM Treasury
3 Conclusion Thirty-Seventh Report - Decarbonising h… Accepted

Set out actions to increase heat pump installer numbers beyond 2025 to meet targets.

DESNZ has made good progress in increasing the number of trained heat pump installers, but it faces a huge challenge to make sure there are enough installers to achieve its target to install 600,000 heat pumps per year by 2028. DESNZ reports that it is on track towards meeting its …

Government response. The government agrees and is taking actions to increase installers, including the Heat Training Grant (until April 2025), a new Low Carbon Heating Technician apprenticeship (Autumn 2023), and supporting local supply chains with over £600,000 in pilots. It has also …
HM Treasury
5 Conclusion Thirty-Seventh Report - Decarbonising h… Accepted

DESNZ lacks clear plan for decarbonising homes where heat pumps are impractical.

DESNZ has not yet worked out how it will support households to decarbonise their homes where heat pumps are not a practical solution. An estimated 20 per cent of homes might be exempt from the government’s plans to phase out new fossil fuel boilers in 2035. This includes those requiring …

Government response. The government agrees to provide further information on alternative low-carbon heating technologies for properties unsuitable for traditional heat pumps and has commissioned research on feasible approaches, which it intends to publish in Summer 2025.
HM Treasury
7 Conclusion Thirty-Seventh Report - Decarbonising h… Accepted

Government plans to decarbonise power, crucial for low-carbon heating, face substantial delays.

Low-carbon heating will increase demand for electricity, but the government’s plans to decarbonise power have been delayed substantially. Heat pumps may change existing patterns around the demand for electricity, and DESNZ recognises that it needs to make sure the power system can manage peaks and troughs throughout the day. Low-carbon …

Government response. The government agrees and has announced a Clean Power by 2030 target, appointing Chris Stark to lead a '2030 Mission Control' to accelerate delivery of critical clean energy infrastructure and resolve obstacles.
HM Treasury
1 Conclusion Thirty-Seventh Report - Decarbonising h… Accepted

Committee took evidence from DESNZ on decarbonising home heating based on C&AG report.

On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Energy Security and Net Zero (DESNZ) about decarbonising home heating.1

Government response. The government agrees, stating it is investing up to £42 million in the Heat Pump Ready innovation programme, part of the £1 billion Net Zero Innovation Portfolio, with projects underway and concluding in 2025, to overcome barriers and support innovation …
HM Treasury
8 Recommendation Thirty-Seventh Report - Decarbonising h… Accepted

Upfront heat pump installation costs remain too high for many households despite grants.

Grants under the Boiler Upgrade Scheme are available to all households irrespective of income. While other schemes are available for low income households, such as the Social Housing Decarbonisation Fund, Home Upgrade Grant and the Energy Company Obligation, DESNZ explained that the Boiler Upgrade Scheme is designed for the able- …

Government response. Government agrees with the recommendation and commits to writing to the Committee by Spring 2025 upon publication of interim findings from the Boiler Upgrade Scheme evaluation, detailing heat pump uptake among different socio-economic groups.
HM Treasury
9 Recommendation Thirty-Seventh Report - Decarbonising h… Accepted

Boiler Upgrade Scheme's universal grants risk "deadweight" for affluent heat pump adopters.

We asked DESNZ whether heat pumps were being installed by people who may have switched to a heat pump anyway, particularly more affluent households. DESNZ accepted that the universal nature of the Boiler Upgrade Scheme raised a prospect of “deadweight”, with some recipients able to afford to install a heat …

Government response. Government agrees with the recommendation and commits to writing to the Committee by Spring 2025 upon publication of interim findings from the Boiler Upgrade Scheme evaluation, detailing heat pump uptake among different socio-economic groups.
HM Treasury
23 Conclusion Thirty-Seventh Report - Decarbonising h… Accepted

DESNZ evaluates Boiler Upgrade Scheme, but evaluation scope and coverage remain unclear.

We asked DESNZ how it was learning lessons from the roll out of heat pumps. It explained that it had already learned some lessons, such as about the level of grant driving demand, and that it would continue to evaluate the roll out of the Boiler Upgrade Scheme “very carefully” …

Government response. The government agrees with the recommendation and commits to writing to the Committee upon publication of the first interim findings from the Boiler Upgrade Scheme evaluation. This report is expected in Spring 2025 and will include details on heat pump …
HM Treasury
28 Recommendation Thirty-Seventh Report - Decarbonising h… Accepted

Major hydrogen heating village trials cancelled or delayed, impacting 2026 strategic decision.

In the 2021 Heat and Buildings strategy, DESNZ committed to developing the evidence base necessary to take strategic decisions on the role of hydrogen for heating buildings in 2026. It also committed to establishing large-scale trials of hydrogen for heating, including: a neighbourhood trial by 2023, a village scale trial …

Government response. Government confirms the recommendation is implemented, acknowledging the cancellation or delay of major hydrogen trials and outlining its ongoing research and development programme to gather evidence for strategic decisions on hydrogen for heating.
HM Treasury
29 Recommendation Thirty-Seventh Report - Decarbonising h… Accepted

Hydrogen town pilot progress halted until after 2026 strategic heating decisions.

We observed that, at the time of our evidence session, an announcement on a successful bidder for a hydrogen town, planned for the end of this decade, was delayed by 13 months. We asked DESNZ when an announcement could now be expected. DESNZ told us that it was considering its …

Government response. Government confirms the recommendation is implemented, stating the decision not to progress a hydrogen town pilot until after 2026 strategic decisions, and outlining its ongoing research and development programme for hydrogen heating.
HM Treasury
30 Conclusion Thirty-Seventh Report - Decarbonising h… Accepted

Hydrogen trials cancellations adversely impact evidence collection for 2026 strategic decision.

In response to a question about how DESNZ had got so far with the trial at Redcar before realising that the supply of hydrogen needed was not available, DESNZ said that it was not solely reliant on the outcomes from the cancelled village trials, although the trials were “important”. It …

Government response. The government states the recommendation is already implemented, detailing its ongoing research and development programme for hydrogen heating. This programme includes safety evidence, technical assessments, trial evidence, and energy systems modelling to inform a strategic decision in 2026.
HM Treasury

Oral evidence sessions

1 session
Date Witnesses
24 Apr 2024 Ben Rimmington · Department for Energy Security and Net Zero, David Capper · Department for Energy Security and Net Zero, Jeremy Pocklington CB · Ministry of Defence View ↗

Correspondence

1 letter
DateDirectionTitle
8 May 2024 Correspondence from Richard Warren, Director of Public Affairs, The Kensa Group…